10/08/09
Filed under:
General
Posted by:
Barrett @ 11:45 am
Chatham County and North Carolina saw lower than expected traffic according to the Credit Suisse Realtor Survey. As a monthly contributor to the report for the area, I get sent copies of the report which I share with my clients and my agents.
A copy of the full report can be downloaded here http://www.remaxchatham.com/reports/RealtorSurvey10-8-2009.pdf
Traffic for first time homebuyers and investors looking for foreclosures and deals continued to lead the traffic. First time homebuyers looking to take advantage of the tax credit at the last minute have been some of the most active buyers in the area.
Home prices continued to slide. The length of time needed to sell also increased slightly month over month.
As the Triangle area tends to be the last region to go into an economic slowdown, it may lag some other areas now in recover as well. Although the Triangle did not make it into the top 20 markets in the U.S. this period, it was still rated as a market to watch.
09/14/09
Filed under:
General,
Buying Real-Estate
Posted by:
Barrett @ 11:58 am
Buying a house in Pittsboro or other parts of Chatham County is not unlike buying a house in any other part of the Triangle or the Country for that matter, with one exception. Chatham has in the past been one of the fastest growing Counties in the region, the Country even. So depending on your idea of the “perfect” home, one thing usually stands out when considering where to buy…location, location, location. And even though growth and development has slowed in Chatham, that trend is not likely to continue.
Not to sound cliché’ ish, but location is one of the single most important features of a home. Select wisely and you can be rewarded with the quiet and serenity of the deep woods. Select poorly and you may find a four lane avenue passing in front of your house in the coming years. Do your homework and select a good location and you can find your nest egg has grown nicely when it is time to move on to your next destination. Choose without some due diligence and you may find after years of improvements and paying your mortgage down that your dream home has turned into a nightmare and in order to sell you may have to practically give the house away, and it may take a long time to do that.
Why is this? There are many reasons and factors that go into what someone would call the “perfect” home. There are as many opinions as there reasons of what makes the “perfect” home. Many people come to what I refer to as the “Rural Triangle” to get away from it all. Get away from the traffic, the hustle and bustle, the noise, basically get away from people. While others come for the greater value and reduced cost of living, but still expect to find all the conveniences of Apex, Cary, or Chapel Hill. And still some want to be in a location early to take advantage of the market upswing in that area. All are good reasons in their own right, but they have different objectives, different location feature requirements, and way different outcomes especially when choosing well or not.
Let’s look a few of these in more depth. We will focus on the Eastern section of Chatham County, especially in and around Pittsboro as that is the area I know most about and can offer the best advice. Let’s first focus on the person moving out to Pittsboro and Chatham County to get away from it all and live out in the country as this is the person likely to be the most impacted by what is happening now and in the near future.
So your driving through the “Rural Triangle” part of Chatham County and come upon this sleepy little town called Pittsboro. You think to yourself, why this is Mayberry, that mystical little town once seen on TV in the 1950s and 60s whose North Carolina native Andy Griffin patrolled the quiet streets with his trusty sidekick Barney. Parking downtown you might opt for dinner or ice cream at one of our quaint eating establishments or shop in one of our unique shops. But sooner than later, if you wait just a little bit, like Dorothy found out in the Wizard of Oz, you might not be in Mayberry. At least not for long.
You see, change was in full swing in Chatham just prior to the economic downturn. And while that downturn has led many developers and developments to head for higher ground, the fact is those tracts of land will one day house many newcomers. That is a fact. No matter what the situation is today, we are still likely to have others pick up where previous developers left off. Some with deep pockets, like Newland Community’s Briar Chapel, staid the course and have continued to prod a long. That pace is also likely to quicken as the economy rebounds and new growth pops up.
But perhaps the biggest reason we will likely see growth continue again at a brisk pace really has less to do with the rebound in the economy and more to do with software, computer software that is. Because when things started to go south for many developers in Chatham, another group started quietly making plans. That group was Preston Development, backed by SAS Software’s Jim Goodnight, one of the richest men on the East Coast. No one really knows what is planned with the more than 6,000 acres the group has quietly amassed. Yes there are plans that have been floated around. But I think what we are likely to see is something very special, different but very special. For this reason we are likely to see renewed investment and growth, not only in Pittsboro, but the entire area, the likes that have not been seen.
Understanding where growth is likely to take place and what type of growth is likely to occur will go a long way in knowing where to buy or build your “perfect” home. It will help you determine where on this growth path you want to be and what is the best place for you live, based on your wants and goals.
Watch for Part 2, where we discuss what is taking place in Chatham and around Pittsboro and how with a little planning on your side you can find your “Dream Home” and live happily ever after.
09/03/09
Filed under:
General
Posted by:
Barrett @ 3:47 pm
Chatham County’s home sales were off in August by 12% year of year from last August. In 2008, Chatham had 54 home transactions according to the Triangle MLS system. For 2009 that number was down slightly by 6 to 48 home transactions, indicating a slowing of the drop in year over year home sales. The news is still tough for area Realtors, though all are seeing increased activity and pending contracts.
Looking at the numbers in more detail, we see that the average home sold square footage dropped by 154 sq. ft. indicating a continuing trend to smaller homes as well. The average sales price in Chatham for August 2009 was $348,274, down $58,064 from $406,338 for last August.
The average days on the market was up slightly from 122 days last August to 154 days for August 2009 for homes that sold. Homes were selling for 4% less as a percentage of asking price, from 96% in 2008 to 92% this year.
There were pockets of better than average performance and pockets or worse than average performance. For the most part, homes priced correctly were selling in all price ranges. Homes in what would be termed “First Time Home Buyer” market were the most active on the market, followed by land, and finally by luxury homes.
07/22/09
Part 1: The Perk Test< ?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
In this installment I’m going to spend some time on the process for buying or selling undeveloped land in Chatham County. This process is for undeveloped land and not improved lots that you typically find in a developed subdivision. With the case of improved lots, the developer or builder has done most of the work for you. But it is always a good idea to check with the County planning department or better yet, your Realtor to make sure all the requirements to build on the lot have been met. You may also find the process is very similar in other Counties.
The first and most basic thing is to determine if the current zoning of the property is applicable for what you plan to use the property for. As we are talking about mostly residential readers here we are going to limit the discussion to residential purposes and not talk about rezoning, special uses, or business zoning.
For the most part, most rural land will be zoned single family residential and agriculture. This means using the land for farming or to build a single family house on is permitted. Check to make sure the land around you is also zoned the same way or you could find a business going up nearby that may affect your value or at least you quality of life. Again the local county planning department or your Realtor can check on the zoning for you.
Once you are sure the land is zoned for the use you want, the next thing to check on is whether or not the property is a buildable lot. Many factors go into this, but the most important and basic factor is water and sewer. Unlike many surrounding Counties, Chatham for the most part does not have County wide water or sewer. There are pockets of areas in Chatham where County water may be available, but no where in the County is waste water treatment service available. While it is true that within the town limits of towns in Chatham there may be sewage service available, for this discussion we focusing on rural undeveloped land out in the County. Private sewage service is available in some developments in the County and in rare instances may be made available to an adjoining property. But again we are focusing this discussion on rural undeveloped land and not lots in a subdivision.
This means that for most of us interested in buying or selling land in the County, we must then obtain water and sewer permits from the County. Sewage permits, more commonly known as improvement permits are usually the one most coveted as it is dependent upon soil quality and soil types found on the land. The process of testing the soils by a County Soil Engineer for a septic system is called Perking or a Perk Test. I have heard in the past that only about 32% of Chatham County is suitable for a conventional type of septic (sewage) system. While given enough well depth, water can usually be found but not always. It is the soil quality on the property and not the absence of water that usually makes the property unbuildable or at least much more expensive to build on due to the requirement of a more complex septic system for poor soils.
The County information for application and fees associated with obtaining a perk test can be found at this link: http://www.chathamnc.org/Index.aspx?page=1054.
05/11/09
Chatham County has passed liquor by the drink. So now what happens? Pretty much nothing, at least in the short term. It is true that some establishments in the county will start to serve mixed drinks. This will put those restaurants on an even keel with restaurants in neighboring counties. But I don’t think we will see any major increases in patronage or in new establishments being opened.
Why? Because most businesses still look at demographics and population when choosing to open a new site. Right now, Chatham County does not have the rooftop count to draw most of the major chains. Today that is. There is still a lot of planned development in the County and especially around Pittsboro, in spite of the economy and increased restrictions due to new ordinances. This is especially true for the Southeastern part of Chatham and Pittsboro, where the developers of Preston Development in Cary have amassed thousands of acres around Pittsboro. This is in anticipation of opening a new multi-use development that will supposedly feature both commercial and residential development the likes that have not been seen in the area for quite some time.
So what does the liquor by the drink passing mean to existing and new residents of Pittsboro and Chatham County? In the short term it means you may be able to walk into your favorite restaurant and enjoy a mixed drink with your meal. In the long term, it may mean that as growth and development return to the County we may see more major restaurant and hotel chains considering a location here. But again, this is not likely to happen overnight as Chatham County still has a way to go in order to build the rooftops up to attract the attention of these major chains.
Another important consideration is to understand where growth and development in the county are likely to occur. If you or your clients want convenience and don’t mind a little traffic in the future, you may want to know where key commercial points are likely to be and where the closest residential will be.
On the other hand, if you enjoy the rural character that is Chatham County today, you may want to avoid those areas for both you and your clients.
Studying development plans at the county and town planning departments will give you a good idea where all this is going to take place.
04/21/09
Filed under:
General
Posted by:
Barrett @ 4:09 pm
The NC septic system permitting process is comprised of 3 permits that must he applied for in sequence to the local health department. The 1st septic system permit is an application for an Improvements Permit (IP). Basically, this permit will indicate whether there is available soil on-site to support a particular type of septic system. If there is available soil on-site to support a particular type of septic system, then the IP will be granted to the applicant. If there is no available soil or limited available soil on-site to support a septic system, then the permit application will typically be denied and/or the local health department will advise the applicant to contact a NC Licensed Soil Scientist (L.S.S.) for further evaluation regarding the feasibility of an innovative septic system on the site. Therefore, even though an IP may have been denied, there still may be septic system solutions available for the property. A NC L.S.S. can advise as to what, if any, solutions might be possible for a site that has been denied an IP.
The 2nd septic system permit is an application for a Construction Authorization (CA). Basically, this permit allows the septic system to be constructed and installed on the site. Many times this permit can be granted at the same time the IP is granted, but not always. If the type of septic system is a conventional type system that requires very little design, then the CA can be granted at the same time as the IP. However, if the type of septic system is more sophisticated (i.e. low pressure pipe, subsurface drip, pre-treatment, etc.) and requires a design by a NC L.S.S and/or a NC Professional Engineer, then the design must be completed and approved by the local health department prior to granting the CA.
The 3rd permit is an application for an Operations Permit (OP). Basically, this permit allows the septic system to be placed into operation. The local health department and designer(s) (where applicable) must view the installed system prior to the system components being covered with soil. This insures that the system is installed according to the design and will operate properly. Once the local health department and designer(s) (where applicable) have evaluated the installed system and are satisfied that the system has been installed properly, then the OP can be granted.
Jeff Vaughan, NCOWCICB Certified Inspector and NC L.S.S.
Senior Soil Scientist
AWT Land Development, Inc.
02/02/09
Filed under:
Land and Lots
Posted by:
Barrett @ 9:33 am
One aspect you will need to consider on a large acreage tract is the soil quality and condition so a wastewater disposal system may be installed. There are a couple of questions you must first ask yourself. Do I plan to subdivide the tract? How many lots do I propose to create? How many bedrooms are desired in the home? There are many more but these will get you started in the process. At a minimum, you will need to contact the county’s Environmental Health Department to perform a soil test to determine the quality of soil in regards to is absorption properties. This would be a first step to obtaining the permit for construction of the septic system. If the desired results are achieved, there is no further action required until construction of the system is to be started. If the inspector deems the soil unsuitable for a conventional system, there are additional steps to take. Assistance from a soil scientist would be the best next step. You would hire an “expert” to test the soil and determine where and how many potential sites (if you desire multiple sites for a subdivision) your tract contains. The soil scientist would then determine the best type of alternative system suitable for the soil type present. Next, you would go back to the county inspector for final approval of the suggested systems and sites. After you receive your written permit(s), construction can be started on the system. For additional information on how to obtain the permit, please reference this link to the Chatham County website http://www.chathamnc.org/Index.aspx?page=119.
01/16/09
The Associated Press-RE/MAX National Housing Report
December 2008
The December 2008 report reflects current housing data from November. Every month, the latest data for each market included in this 60-city report will be uploaded to this page on Mainstreet. Feel free to use the data in your newsletters, promotional materials, etc., but be sure to reference the AP-RE/MAX National Housing Report as your source. For a better understanding of the report specifications, please see the “Report Parameters” page.
Click to view the latest market report:
Albuquerque, NM Honolulu, HI Omaha, NE Washington, DC
Anchorage, AK Houston, TX Orlando, FL Wichita, KS
Atlanta, GA Huntington, WV Passaic, NJ Wilmington, DE
Augusta, ME Indianapolis, IN Philadelphia, PA
Baltimore, MD Jackson, MS Phoenix, AZ
Billings, MT Jackson, WY Pittsburgh, PA
Birmingham, AL Kansas City, MO Portland, OR
Boise, ID Las Vegas, NV Providence, RI
Boston, MA Little Rock, AR Raleigh-Durham, NC
Charlotte, NC Los Angeles, CA Richmond, VA
Chicago, IL Louisville, KY Salt Lake City, UT
Cleveland, OH Manchester, NH San Antonio, TX
Dallas/ Ft Worth, TX Memphis, TN San Diego, CA
Denver, CO Miami, FL San Francisco, CA
Des Moines, IA Milwaukee, WI Seattle, WA
Detroit, MI Minneapolis, MN St Louis, MO
Fargo, ND New Orleans, LA Tampa, FL
Hartford, CT New York, NY Tulsa, OK
To view the report in it’s entirity, click Here.
10/07/08
North Carolina House Bill 688 is new legislation that was effective January 1, 2008. This legislation targets septic system inspectors and septic system installers. Septic system installers and inspectors MUST now be certified by the North Carolina On-site Wastewater Contractors and Inspectors Certification Board (NCOWCICB) in order to install or inspect septic systems in NC.
Any septic system inspections done in NC as part of a real estate transaction must now be done by a NCOWCICB certified inspector. The legislation does NOT require a septic system inspection as part of a real estate transaction. However, it does require that a NCOWCICB certified inspector conduct the septic system inspection when one is done as part of a real estate transaction. Therefore, if you have a septic system inspection conducted as part of a real estate transaction in NC, please make certain that your inspector is NCOWCICB certified. Certified inspectors should carry a wallet card and are listed on the following website: http://www.ncowcicb.info/.
This information provided by:
Jeff Vaughan, NCOWCICB Certified Inspector and NC L.S.S.
Senior Soil Scientist
AWT Land Development, Inc.
03/05/08
Filed under:
Selling Real-Estate
Posted by:
Barrett @ 4:24 pm
10 Ways to Make Your Home Irresistible at an Open House
1. Put fresh or silk flowers in principal rooms for a touch of color.
2. Add a new shower curtain, fresh towels, and new guest soaps to every bath.
3. Set out potpourri or fresh baked goods for a homey smell.
4. Set the table with pretty dishes and candles.
5. Buy a fresh doormat with a clever saying.
6. Take one or two major pieces of furniture out of every room to create a sense of spaciousness.
7. Put away kitchen appliances and personal bathroom items to give the illusion of more counter space.
8. Lay a fire in the fireplace. Or put a basket of flowers there if it’s not in use.
9. Depersonalize the rooms by putting away family photos, mementos, and distinctive artwork.
10. Turn on the sprinklers for 30 minutes to make the lawn sparkle.
Filed under:
Selling Real-Estate
Posted by:
Barrett @ 4:23 pm
7 Steps to Preparing for an Open House
1. Hire a cleaning service. A spotlessly clean home is essential; dirt will turn off a prospect faster than anything.
2. Mow your lawn, and be sure toys and yard equipment are put away.
3. Serve cookies, coffee, and soft drinks. It creates a welcoming touch. But be sure the kitchen has been cleaned up; use disposable cups so the sink doesn’t fill up.
4. Lock up your valuables, jewelry, and money. Although the real estate salesperson will be on site during the open house, it’s impossible to watch everyone all the time.
5. Turn on all the lights. Even in the daytime, incandescent lights add sparkle.
6. Send your pets to a neighbor or take them outside. If that’s not possible, crate them or confine them to one room (a basement or bath), and let the salesperson know where to find them.
7. Leave. It’s awkward for prospective buyers to look in your closets and express their opinions of your home with you there.
Filed under:
Buying Real-Estate
Posted by:
Barrett @ 4:22 pm
1. The closing date. See if the date the buyer wants to take title is reasonable for you.
2. Date of possession. See if the date the buyer wants to move in is reasonable for you.
3. The earnest money. Look for the largest earnest-money deposit possible; since it is forfeited if the buyer backs out, a large deposit is usually a good indication of a sincere buyer.
4. Fixtures and personal property. Check the list of items that the buyer expects to remain with the property and be sure it’s acceptable.
5. Repairs. Determine what the requested repairs will cost and whether you’re willing to do the work or would rather lower the price by that amount.
6. Contingencies. See what other factors the buyer wants met before the contract is final—inspections, selling a home, obtaining a mortgage, review of the contract by an attorney. Set time limits on contingencies so that they won’t drag on and keep your sale from becoming final.
7. The contract expiration date. See how long you have to make a decision on the offer.
Filed under:
Buying Real-Estate
Posted by:
Barrett @ 4:19 pm
Answer these questions to help you decide whether moving up makes sense.
1. How much equity do you have in your home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of paying a mortgage, but if you’ve owned your home for a number of years, you may have significant unrealized gains.
2. Has your income increased enough to cover the extra mortgage costs and the costs of moving?
3. Does your neighborhood still meet your needs? For example, if you’ve had children, the quality of the schools may be more of a concern now than when you first purchased.
4. Can you add on or remodel? If you have a large yard, there might be room to expand your home. If not, your options may be limited. Also, do you want to undertake the headaches of remodeling?
5. How is the home market? If it’s good, you may get top dollar for your home.
6. How are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer.
Filed under:
Home Ownership
Posted by:
Barrett @ 4:18 pm
1. Get at least three written estimates.
2. Get references and call to check on the work. If possible, go by and visit earlier jobs.
3. Check with the local Chamber of Commerce or Better Business Bureau for complaints.
4. Be sure that the contract states exactly what is to be done and how change orders will be handled.
5. Make as small a downpayment as possible so you won’t lose a lot if the contractor fails to complete the job.
6. Be sure that the contractor has the necessary permits, licenses, and insurance.
7. Be sure that the contract states when the work will be completed and what recourse you have if it isn’t. Also remember that in many instances you can cancel a contract within three business days of signing it.
8. Ask if the contractor’s workers will do the entire job or whether subcontractors will do parts.
9. Get the contractor to indemnify you if work does not meet local building codes or regulations.
10. Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage.
11. Guarantee that materials used meet your specifications.
12. Don’t make the final payment until you’re satisfied with the work.
Filed under:
General
Posted by:
Barrett @ 4:17 pm
It’s an objective opinion of value, but it’s not an exact science so appraisals may differ.
For buying and selling purposes, appraisals are usually based on market value—what the property could probably be sold for. Other types of value include insurance value, replacement value, and assessed value for property tax purposes.
Appraised value is not a constant number. Changes in market conditions can dramatically alter appraised value.
Appraised value doesn’t consider special considerations, like the need to sell rapidly.
Lenders usually use either the appraised value or the sale price, whichever is less, to determine the amount of the mortgage they will offer.
Used with permission from Kim Daugherty, Real Estate Checklists and Systems (http://www.realestatechecklists.com).
Filed under:
Selling Real-Estate
Posted by:
Barrett @ 4:15 pm
When you sell a stock, you owe taxes on your gain—the difference between what you paid for the stock and what you sold it for. The same is true with selling a home (or a second home), but there are some special considerations.
How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate this:
1. Take the purchase price of the home: This is the sale price, not the amount of money you actually contributed at closing.
2. Add adjustments:
Cost of the purchase—including transfer fees, attorney fees, inspections, but not points you paid on your mortgage.
Cost of sale—including inspections, attorney’s fee, real estate commission, and money you spent to fix up your home just prior to sale.
Cost of improvements—including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.
3. The total of this is the adjusted cost basis of your home.
4. Subtract this adjusted cost basis from the amount you sell your home for. This is your capital gain.
A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:
You have lived in the home as your principal residence for two out of the last five years.
You have not sold or exchanged another home during the two years preceding the sale.
Also note that as of 2003, you also may qualify for this exemption if you meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.
Filed under:
Home Ownership
Posted by:
Barrett @ 4:14 pm
There are several reasons to refinance your home:
• To lower the interest rate on your mortgage, reducing your monthly payments and overall cost;
• To reduce the term or length of your loan, doing so can save you thousands of dollars in interest;
• To provide a means of consolidating your debt.
All of these are excellent reasons to pursue refinancing, but several issues should be considered first.
Refinancing is similar to the process you encountered when you closed on your first mortgage. It requires an application, credit check, new title search, as well as an appraisal and other fees. As you know, this process can be quite lengthy and expensive.
As a rule of thumb, it pays to refinance if you can get an interest rate at least one percentage point lower than what you are currently paying. However, every situation is different. Some lenders are offering reduced fees or no points. Asking yourself a few questions may help you determine if you can save money:
• How much can I lower my current monthly payment?
• How long do I plan to stay in the house after I refinance?
• How much will I pay in refinancing costs?
Knowing these items will help you figure out where you break even and when you begin saving money. Consider the following example: you plan to stay in your home for another four years, refinancing will save you $85 per month, and the costs of refinancing will be $2200. In this case, it would take 26 months, or just over two years, to recover the costs of refinancing and begin saving money, making it worthwhile for you to refinance your home.
It’s a big decision; there’s no doubt about that. It’s big because it can have a huge, long-term effect on your family’s wealth (or lack thereof). Refinancing isn’t cheap, for one thing. The lending fees and closing costs alone likely will zing your net worth to the tune of more than two thousand dollars
Consider This Before Refinancing
Refinancing a mortgage is dependent largely on one’s personal financial situation. There are several mortgage options available in the market today. It is advisable to first evaluate each option before taking a decision. If the right option is unavailable, it sometimes better to forgo the refinancing altogether.
Below are some important points that merit some consideration while deciding on a refinance option:
• Funding and Fees: Refinancing a mortgage will require that you have sufficient funds to take care of up-front costs and fees. If you do not have adequate funds to pay for these initial costs, it may be possible to finance these costs by adding them into your mortgage, should you decide to take one. This results in slightly higher monthly costs, as your mortgage becomes larger with the fees included
• Recovering the costs: Refinancing costs and fees are typically recovered within 2-3 years. Hence, if you are thinking of selling your property before then, or paying off the loan within a short duration, then refinancing is probably not suitable. There will be insufficient time to recover your initial costs. However, this also depends on the amount of savings you will have with the new mortgage, as well as the amount of up-front costs.
• Income levels: Another factor to take into consideration is your income. If your income has increased significantly, then the chances of you being able to afford higher monthly payments will be higher, and help you to decrease the term of your mortgage. If the existing interest rate is lower for a shorter mortgage term than it would be for a longer-term mortgage, then refinancing is a good bet. Otherwise, it is better to just make larger principal payments against your current mortgage.
• Adjustable Rate Mortgage (ARM): If the existing interest rates for a fixed rate mortgage are the same as (or little higher than) the Adjustable Rate Mortgage, then refinancing can be justified. If the fixed rate is lower than it is anticipated to be when the ARM changes over to a fixed rate, then you might also strongly consider the refinance option.
In short, it is important to thoroughly think through your refinancing options. It should be re-examined periodically by considering changes in your financial status, as well as those due to fluctuations in the economy. You may find that deferring your refinancing option for a later time can save you considerable money.
Filed under:
Buying Real-Estate
Posted by:
Barrett @ 4:13 pm
Ok, you’ve probably heard about the “Mortgage Crisis”…but what does that mean exactly? Up until recently the mortgage industry had been enjoying a freedom never before experienced. In greatly appreciating markets across the U.S., banks and mortgage companies offered various types of home financing options which required less income and asset verification, as well as reduced credit requirements for borrowers. The banks reasoned that they were somewhat protected against any losses due to the increasing value of the homes. These creative loans were comprised of adjustable rate mortgages, interest only, negative amortization, or no/low money down. So, when the ARM rate changed, or the negative amortization was called due, or a buyer went to sell and there was no equity in the home, borrowers found themselves in a pickle. Coupled with many markets now depreciating, which was not expected, it was a disaster!
So, what’s the good news? The Fed is stepping in to help folks in some of these “bad” loans refinance into government backed, fixed, low interest rate loans. These loans are also available for purchases, which will replace the subprime loans of the recent past. The underwriting guidelines are tightening and will be more common sense, preventing someone from getting into a home that they truly cannot afford. Rates remain at all time lows and are expected to drop further over the course of the next six months. And many folks in the mortgage and real estate industry who were unethical or practiced bad business have been turned out on their ears.
If you surround yourself with trusted professionals, it is a wonderful time to buy, sell, or refinance your home!
02/28/08
Filed under:
Selling Real-Estate
Posted by:
Barrett @ 5:06 pm
Make your home more appealing for potential buyers with these quick and easy tips.
1. Trim bushes so they don’t block windows and cut down on light.
2. Buy a new doormat.
3. Put a pot of bright flowers (or a small evergreen in winter) on your porch.
4. Put new doorknobs on your doors.
5. Put a fresh coating on your driveway.
6. Edge the grass around walks and trees.
7. Keep your garden tools out of site.
8. Be sure kids put away their toys.
9. Buy a new mailbox.
10. Upgrade the outside lighting.
11. Use warm, incandescent light bulbs for a homey feel.
12. Polish or replace your house numbers.
13. Clean your gutters.
14. Put out potpourri or burn scented candles.
15. Buy new pillows for the sofa.
16. Buy a flowering plant and put it in a window you pass by frequently.
17. Make a centerpiece for your table with fruit or artificial flowers.
18. Replace heavy curtains with sheer ones that let in more light.
19. Buy new towels.
20. Put a seasonal wreath on your door.
02/21/08
Filed under:
General
Posted by:
Barrett @ 1:56 pm
Welcome to the RE/MAX Southern Advantage real-estate blog and podcast. We have just “Relocated” from a different service provider so thanks for being patient while we get all the articles and podcast back up.
And again, Welcome!
Barrett Powell, Broker/Owner